SMSF collapses imminent in hunt for yieldBY ALICE URIBE | THURSDAY, 11 SEP 2014 12:40PMA chase for yield, combined with investor empowerment and lack of education could be the perfect storm for a large scale self-managed superannuation fund (SMSF) collapse, according to Aberdeen Asset Management (Aberdeen). Related News |
Editor's Choice
ASIC stalls Sequoia bid to ditch cross guarantee deed
|ASIC is again putting up roadblocks to Sequoia Financial Group's attempt to revoke the deed of cross guarantee with InterPrac Financial Planning, asking more questions and requesting more information before the group rids itself of all liabilities arising from the Shield and First Guardian disaster.
MLC Super creates two new general manager roles
|MLC Super has created two new roles of general manager of portfolio delivery and general manager of employer superannuation.
Robeco pitches Enhanced Indexing strategy to instos
|Robeco has launched a new systematic strategy for institutional investors, designed to manage the Australian index's overconcentration in banks and miners.
Mercer reshapes fund manager lineup for fixed income strategy
|Mercer Australia has halved the number of fixed income fund managers in its sovereign bond fund strategy, retaining just Challenger Life and Macquarie Investment Management.
Further Reading
Products
Featured Profile

David Sharpe
CHAIRMAN
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
A family man, business owner, cricket fanatic and financial adviser, David Sharpe has many facets. One of his biggest legacies, as he steps down as chair of the Financial Advice Association Australia, is leaving the profession stronger than he found it.







What a pity the poor non-aligned financial adviser is almost extinct. Thank you regulators, thank you financial journalists, thank you PI insurers, thank you all you pressure groups who don't understand the need that the ordinary Australian has for good advice, and what's more important, where they can get it!
Investors have largely overestimated their own investment capabilities and have decided to "go it themselves because they can do better than the full time professionals" so they set up a SMSF.
When they've made poor investment choices, chasing attractive above market returns, we've seen it all over the TV as they look to blame others for their poor investment decisions. The sad thing is that it will now be their lifetime superannuation savings that are now at risk of their overinflated egos suggesting they can do it better than the professionals.
There will be a steady stream of whinging SMSF members looking for someone to blame...all over again....well, the TV stations won't be struggling for stories...!!
Sub optimal asset allocation is not limited to SMSFs. With the array of investment options available within the public offer superannuation sector, members who make their own investment decisions, in the absence of quality advice, are equally exposed to under-performance and potential negative returns. The potential for members to lose their retirement savings through poor investment decisions is not the exclusive domain of the SMSF sector. Many (most) members need to accept that they are not skilled investment gurus and should be willing to take the counsel of a professional and skilled financial adviser. This applies to members of both SMSF and public offer funds.